In every business customer transaction, continuous improvement and innovation are key to enabling a flourishing business. That is why these three key business areas are at the heart of Resolution Insurance’s focus as a business and have enabled the company to take remarkable steps in the insurance market at large. As a result, Resolution can now be counted amongst the top 10 insurance companies in the country and top five companies in the health insurance market
Resolution Insurance has achieved major strides with the implementation of its diversification strategy principally targeted at growing the non-medical general business while continuing to improve the quality of the medical business. Total premiums grew by 26% from Kshs 3.9 billion to Kshs 4.9 billion for the year end December 31, 2017. The diversification strategy also enabled Resolution to increase its customer base at an average of 14% from 56,344 in 2012 to 106,973 as end of 2017. In a nutshell this diversification has seen the non-medical business grow by 186% since its inception in 2013, achieving Kshs 0.8 million worth of business in 2017 and a target of Kshs 2 billion by end of year 2018 resulting in a projected profit of Kshs 160 million.
Resolution Insurance has also built a strategic digital roadmap that will play a central role in improving customer service, increasing customer satisfaction, and maintaining customer retention while still ensuring profitability due to increased revenue and reduced costs.
“In this modern day and age digitization is important for the evolution of businesses. Due to this fact we have invested in key platforms and systems to both improve and accelerate our business operations,” said Ms Alice Mwai, MD, Resolution Insurance.
For example, the Company invested Kshs 120 million in a general insurance ERP system that will automate all general insurance operations, enable integration of a self-service portal for customers, as well as digital initiatives to increase customer loyalty. All of this will be underpinned by the ongoing collection of data for business intelligence initiatives to further drive innovation. A Kshs 10 million investment in an Enterprise architecture platform t will further lay the ground work for digital insurance and other key initiatives.
Amidst a challenging year for the market, in 2017 Resolution still managed to increase its market share from 3.25% (2016) to 4% (2017). Medical insurance saw an increase in market share from 9% in 2016 to 11% in 2017. Medical class of business grew by 12% from Kshs 3 billion to Kshs 4 billion for the year ended December 31, 2017.
“We are happy with the positive progress that we are making as an insurer and we project revenue growth of 30% in 2018 from Kshs 4.9 billion in 2017 to Kshs 6.4 billion. We are happy to have achieved top 10 status amongst insurance companies in Kenya, and we are we are focused on becoming the number one choice for Kenyans.” said Peter Nduati, the Resolution Group CEO.
Resolution’s partner and lead investor, LeapFrog Investments, has facilitated a research grant of 100,000 Euros that will be deployed to better understand the insurance needs of the emerging consumer, ensuring continued and increased growth in this important customer segment.
“The Resolution business and team are playing a key role in providing the protection needed by thousands of Kenyans,” said Patrick Duff, Director, LeapFrog Investments, “These investments in research, technology and digitization put the customer at the heart of the business, and focus on enabling the company to deliver the most relevant products and the right service, for each segment of the insurance market in which they play. This is a strategy that will accelerate Resolution’s leadership in the market near term.”
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